Collection Process / Severance Process Cancellation

When a pay plan (PP) is created, the system determines if it can cancel active collection and severance processes associated with the pay plan's account and debt class. It does this because a pay plan's scheduled payments act as "pseudo payments" that relieve the account's debt (temporarily). The following points describe how this works:

• The system attempts to cancel collection processes by calling the Collection Process Cancel Criteria Algorithm defined on the debt class that is associated with the collection process. This algorithm is meant to cancel a collection process if the sum of ALL service agreements in the debt class have debt less than a given threshold amount. Because of the existence of the pay plan, the actual debt will be temporarily reduced by the amount of the pay plan's scheduled payments before it is compared to the threshold amount (see How Pay Plans Affect The Account Debt Monitor for more information about how debt is reduced). Note: this temporary reduction will only occur if you have plugged in the appropriate pay plan debt reduction algorithm on the debt class.
• It attempts to cancel severance processes by calling the Severance Process Cancel Criteria Algorithm defined on the debt class that is associated with the severance process. This algorithm is meant to cancel a severance process if the sum of ALL service agreements in the debt class have debt less than a given threshold amount. Because of the existence of the pay plan, the actual debt will be temporarily reduced by the amount of the pay plan's scheduled payments before it is compared to the threshold amount (see How Pay Plans Affect The Account Debt Monitor for more information about how debt is reduced). Note: this temporary reduction will only occur if you have plugged in the appropriate pay plan debt reduction algorithm on the debt class.

If collection / severance processes still exist for the account / debt class associated with the pay plan, a warning is issued.